MBIA Insurance Corporation will receive $110 million to drop its lawsuit against Flagstar Bank, which it will use to repay a portion of its intercompany loan from National Public Finance Guarantee.

MBIA Inc. announced late Thursday that its subsidiary had settled the lawsuit it brought against the Michigan-based bank earlier this year, which related to approximately $1.1 billion of securitization transactions backed by second-lien mortgages that were insured by MBIA Corp. in 2006 and 2007.

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